A class action lawsuit was filed in United States District Court in New York against Ambit Energy over allegations the company charged consumers hundreds of dollars in hidden and illegal fees. | United States District Court Western District of New York

ROCHESTER, N.Y. (Legal Newsline) - An energy company in New York is facing claims it charged consumers “hundreds of dollars in hidden, illegal fees.”

Scott Lazarek and Henry Breton filed the lawsuit on June 15 in United States District Court in New York against Ambit Energy claiming the company advertises that its a cheaper option for customers, but then charges them the hidden fees.

The energy company offers electric and natural gas to customers in 14 states, and most of their customer base is to residential homes. The lawsuit said the company's “budget billing” plans are meant to save customers money.

“Unfortunately, customers who switch find just the opposite – and end up actually paying way too much for energy,” the lawsuit said. “Ambit’s budget billing plan, which it offers to consumers in several markets across the United States, is a prime example. Rather than helping customers manage their energy charges, Ambit’s budget billing plan breaks customers’ budgets with hidden charges.”

The lawsuit said Ambit would allegedly misrepresent the balance owed to customers on their bill, or add “additional budget billing 'settlement' charges on customers' final bills.”

The lawsuit is seeking class status for Ambit customers, and is also seeking more than $5 million in damages plus court costs.

The plaintiffs are represented by Steven L. Wittles, J. Burkett McInturff and Tiasha Palikovic of Wittles Law, P.C. in Armonk, N.Y.; Seth R. Lesser and Fran L. Rudich of Klafter Olsen & Lesser, LLP in Rey Brook, N.Y.; and Charles J. LaDuca and Beatrice Yakubu of Cuneo Gilbert & LaDuca, LLP in Bethesda, Md.

United States District Court for the Western District of New York case number 6:15-cv-06361.

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